Kingbird Company has determined that the standard cost to manufacture its product includes 2 units of direct materials at $6.00 perunit. During January, the company purchased 50,400 units of direct materials at a cost of $5.90 per unit and used 50,400 units ofdirect materials to produce 23,300 units of its product.Calculate the total materials variance, and the price and quantity variances.Materials VarianceMaterials Price VarianceMaterials Quantity Variance69$5040UnfavourableFavourableUnfavourable

The variance is the difference between the standard and actual cost data. The variance can be…

Answered: Calculate the total materials variance,…

Calculate the total materials variance, and the price and quantity variances. Materials Variance Materials Price Variance Materials Quantity Variance $ 1A $ 5040 Unfavourable Favourable Unfavourable

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5EA: Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The...

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Question

Kingbird Company has determined that the standard cost to manufacture its product includes 2 units of direct materials at $6.00 per
unit. During January, the company purchased 50,400 units of direct materials at a cost of $5.90 per unit and used 50,400 units of
direct materials to produce 23,300 units of its product.
Calculate the total materials variance, and the price and quantity variances.
Materials Variance
Materials Price Variance
Materials Quantity Variance
69
$
5040
Unfavourable
Favourable
Unfavourable

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